May 18, 2021

MP Now News

Mortgage News

New Home Sales Top 1 Million, Setting Post-Recession High

Sales of new homes reversed direction in March. Fully recovered from the 18.2 percent nosedive these sales took in February. The Census Bureau said sales of newly built homes rose 20.7 percent to a seasonally adjusted annual rate of 1.021 million units. This is a 66.8 percent increase from the sales pace of 612,000 units in March 2020, though that rate was and was affected by the pandemic shutdowns the highest annual sales rate since 2005.

The February loss was also lower than originally reported. These sales have been revised from 775,000 to 846,000 units.

The analysts’ estimates fell far short of the figures given. The people surveyed by Econoday had forecast sales between 820,000 and 950,000. The consensus was 887,000.

On an unadjusted basis, 97,000 new homes were sold in the month, compared to 70,000 in the previous month. In the year to date, 243,000 apartments have been sold. an increase of 34.4 percent compared to the 181,000 sales in the first three months of 2020.

The average price for a home sold in March was $ 330,800 and the average price was $ 397,800. In March 2020, the respective retail prices were $ 328,200 and $ 375,400.

At the end of the reporting period, there were an estimated 307,000 new homes for sale, identical to the inventory in February. However, due to the higher conversion rate, this was the case Estimated 3.6 months after 4.4 months in February. In March 2020 the delivery was more than 6 months.

In three of the four main regions, sales rose by double digits from month to month, but by double digits in the west, where they also fell annually. The increase in the northeast was 20 percent from February and 108.7 percent more than in March. Midwestern sales rose 30.7 percent and 78.4 percent in both periods.

The south recorded an increase of 40.2 percent over the course of the month and a year-on-year increase of 90.1 percent. Sales in the west, which also recorded poor March numbers for existing property sales, fell 30.0 percent from the previous month and fell 2.0 percent from the previous year.